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Here's Why This Semiconductor ETF Rewarded Investors in June
The iShares Semiconductor ETF (NASDAQ: SOXX) rose 12.6% in June, according to data from S&P Global Market Intelligence. The performance marks another strong month for the semiconductor sector (the ETF aims to track the NYSE Semiconductor Index) and, despite a dip in July, it's up 88% in 2026 as of the time of writing.
The NYSE Semiconductor Index, and therefore the ETF, consists of modified float-adjusted market-cap-weighted holdings of the 30 largest U.S.-listed semiconductor companies. In practice, the top five companies are capped at 8% of the index, rebalanced at the end of the quarter, and the weight of the others is capped at 4%.
Which Semiconductor ETF Is Winning The AI Race In 2026?
The artificial intelligence race has made semiconductors the stock market’s best-performing industry in 2026, but not every ETF has benefited equally.
The gap between the strongest and weakest semiconductor ETF has stretched to nearly 40 percentage points through July 6, and it traces back to a single stock.
Over the same stretch, the VanEck Semiconductor ETF (NASDAQ:SMH), the largest fund in the group with $70.59 billion in assets, has returned 66.2%.
All five funds fish from the same pond of roughly 25-50 chip names. What separates them is how much weight each assigns to Nvidia Corp. (NASDAQ:NVDA) and the other megacaps, and Nvidia is the laggard of the year.
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SOXX vs. IYW: Is the iShares Semiconductor ETF or Tech ETF the Better Buy for Investors?
The iShares U.S. Technology ETF (IYW 2.37%) and the iShares Semiconductor ETF (SOXX 6.58%) both target the most aggressive growth corners of the market, but with different levels of diversification.
While IYW casts a wider net across the technology sector, SOXX focuses on the 30 largest U.S.-listed semiconductor companies, often leading to more dramatic price swings for investors seeking specialized industry exposure.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The two funds are comparable in terms of fees and income, though SOXX has a slight advantage on both fronts with a lower expense ratio and a marginally higher dividend yield.
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